Airica Steed, the former MetroHealth System CEO who was fired in August, is suing the hospital's board of trustees.
The lawsuit, filed Monday in Cuyahoga County Court of Common Pleas, alleges Steed was a target of discrimination and harassment by members of the board "immediately upon commencing her job." It also claims Steed was subjected to a heightened degree of scrutiny, oversight and control that was not placed upon previous MetroHealth CEOs.
Steed also alleges her firing was unlawful retaliation for taking approved medical leave. She experienced other forms of retaliation, too, the suit alleges, such as when she reported concerns about racial discrimination and suspicions that former and current MetroHealth employees were destroying incriminating public records.
While the board named poor performance as the reason for Steed's termination last year, the lawsuit cites performance reviews for Steed that were favorable as recently as March 2024. The suit also claims Steed's predecessors were not subject, as she was, to a wide-ranging "360 review" during their first years as CEO.
"Steed exceeded the stated goals for every measure of her review and was paid out 121% of her performance bonus as a result of that review," the lawsuit states.
The lawsuit also accuses the board of defamatory behavior against Steed after her termination, such as sharing her travel expenses with the news media. She is seeking damages in excess of $25,000.
Negotiations for a separation agreement between Steed and the board grew tense in October. Steed was seeking a separation agreement that accounted for the damages she suffered as a result of her firing. She also alleged at the time that she had not received payments owed to her by MetroHealth, including unused vacation and sick time pay.
Akram Boutros, Steed's predecessor, is also suing the hospital system for defamation. Boutros accuses MetroHealth of breach of contract, defamation and promissory estoppel — an unfulfilled promise that allows a plaintiff to recover damages.
MetroHealth fired Boutros in 2022 amid claims he improperly authorized $1.9 million in bonus payments to himself without the board of trustees' knowledge. A state auditor found in November that the bonuses were not criminal.
